Worldcoin's Promise

Scanning my eyes to ensure a future income, should artificial intelligence replace my job? This isn't a plot for a Terminator reboot, but Worldcoin's promise. In this Alpha Insight, we evaluate the project's potential versus addressing an anticipated issue.

The concept is straightforward: artificial intelligence is poised to advance, leading to increased prosperity but also job displacement. This could exacerbate wealth inequality. Worldcoin's response? Granting everyone an allowance, mirroring the idea of a universal basic income (UBI) financed by AI-generated revenues.

Surprisingly, Worldcoin is steered by Sam Altman - the tech prodigy also at the helm of OpenAI, known for ChatGPT and DALL-E. Ironically, with Worldcoin, he proposes a solution to a problem he could be contributing to.

But how do you distribute this allowance without opportunists exploiting the system? Dutch citizens are no strangers to the challenges, exemplified by the benefits scandal. Worldcoin’s approach? Not just creating a financial system, but an identity verification system as well. Enter, the Proof of Personhood, relying on biometric data or reputation-based metrics, an idea explored in detail by Vitalik recently.

Worldcoin’s Orb:

The chosen biometric is the user's iris, as seen in many news headlines. To create an account, the user scans their iris using Worldcoin's Orb, reminiscent of R2D2's dystopian sibling. This gleaming sphere is equipped to capture detailed human iris scans.

How Does It Work?

Start by installing Worldcoin's app on your phone. Once set up, and after the Orb verifies your uniqueness and humanity, a World ID is assigned. Contrary to potential concerns, the iris scan isn’t stored, only its hashed version (IrisCode). Upon ID creation, users receive 25 Worldcoin tokens (WLD), with one additional token claimable weekly. Currently valued at $2.35 per token, initial iris scanning rewards users with roughly $60. Worldcoin hints at more potential uses for World ID, like voting in an upcoming DAO or receiving the aforementioned UBI.

However, Worldcoin's token distribution faces obstacles. In China, the app is banned, and in the U.S., while scanning is allowed, tokens aren’t rewarded.

Addressing a Nonexistent Issue:

Worldcoin's target issue, AI dominating job markets and causing wealth shifts, doesn't exist yet. Plus, whether this anticipated shift will manifest as predicted remains uncertain. Unlike tech giants like Google or Facebook, running an AI model isn't labor-intensive. Thus, while AI might increase prosperity, it doesn’t necessarily mean large corporations will monopolize wealth.

In essence, Worldcoin appears to be a preemptive solution to a hypothetical issue. That's fine unless there are adverse side effects. Spoiler alert: there are, spanning technical, ethical, and societal realms.

Technical Concerns:

Biometric data collection and storage by Worldcoin are the most discussed risks on social media. Can we trust a profit-oriented company with such sensitive data? However, if Worldcoin's assurances are genuine, then data concerns might be alleviated. Technical aspects raise other issues, such as Orb production centralization, potential hardware vulnerabilities, and questions about World ID anonymity.

Ethical Implications:

Many ethical concerns arise from Worldcoin's technical solutions. Their use of intricate cryptographic principles may be complex for the average user. Furthermore, while protocols like Bitcoin and Ethereum are open source, Worldcoin's software isn't. Consequently, transparency is an issue, as are their business practices and the true accessibility of World IDs for the underprivileged.

Societal Ramifications:

The biggest concern may be societal. Existing tax and benefit systems address wealth inequality, overseen by governments. Though imperfect and bureaucratic, many would prefer governmental control over a corporate entity like Worldcoin, especially when it comes to vital infrastructures.

In conclusion, while Worldcoin presents an intriguing proposal, its potential impact on society and numerous associated risks call for rigorous scrutiny.